Importance of Cost of Attendance in Student Financial Planning
Learn about the Cost of Attendance (COA) and its significance in determining students' financial needs. Discover why realistic cost estimates are crucial for budgeting and financial aid allocation. Explore the basic principles and methods of constructing a COA to ensure accuracy and equity in student financial planning.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
CREATING A COST OF ATTENDANCE A General Overview Fall Conference November 3 - 6, 2019 1
What is a Cost of Attendance? The Cost of Attendance (COA) is a reasonable, best estimate of the costs a student may incur during a specific period of enrollment, such as an academic year. Also sometimes referred to as a budget, the COA is integral in establishing a student s financial need and setting a limit on the total amount of aid a student may receive for that specific time period. Spring Conference April 7 10, 2019 2
Why do we need a Cost of Attendance? The COA is a necessary component of the formula that determines a student s financial need Realistic Costs what expenses a family can reasonably expect at a specific school for a specific amount of time Equity allows differentiation among students with varying degrees of educational costs and resources for paying those costs Accuracy projecting accurate costs allows for effective student budgeting, lessens the need for adjustments Spring Conference April 7 10, 2019 3
Creating the COA Basic Principles Comprehensiveness Reasonableness Systematic Development Specific Time Period Professional Judgement Option Documentation Localization Spring Conference April 7 10, 2019 4
Methods of Construction Responsibility Financial Aid Administrators are responsible for developing and maintaining student COAs, and conducting periodic reviews for adequacy Frequency An established calendar of review should be incorporated in an office policy and procedure manual, outlining the frequency for collecting updated data for COAs Demographics COA should reflect typical expenses of the general student group; there may be different COAs for different student groups who have similar expenditures, i.e. graduate students, distance ed students, out-of-state students, etc. Spring Conference April 7 10, 2019 5
Methods of Construction, Continued Available Information Existing information may be available and sufficient to construct COAs Board of Labor Statistics College Board Current/Recent State/Regional Cost of Living surveys Data from professional financial aid organizations Spring Conference April 7 10, 2019 6
Methods of Construction, Continued New Research COA research is essential to the accountability of financial aid administrators who are charged with responsible stewardship of financial aid funds. Student Surveys All students, not only those receiving financial aid Specific, not broad questions Interviews, budget questionnaires, expense records Institutional Data Current institutional publications On-campus Housing Department Campus Bookstore Community Sources Local vendors, realtors, utility agencies, etc. Spring Conference April 7 10, 2019 7
Cost of Attendance Components Cost of Attendance components are prescribed by the Higher Education Act of 1965 (HEA), as amended; part F section 472. Although the Department of Education offers guidance, ED is prohibited from issuing regulations on COA. The HEA outlines allowable costs into basic cost components and additional allowances Spring Conference April 7 10, 2019 8
Basic COA Components Tuition & Fees Room & Board Books & Supplies Transportation Personal/Miscellaneous Expenses Loan Fees Spring Conference April 7 10, 2019 9
Additional Cost Allowances Dependent Care Expenses Study Abroad Expenses Disability Related Expenses Cost of a first Professional Credential Cooperative Education Program Expenses Spring Conference April 7 10, 2019 10
COA Restrictions Less Than Half-time Enrollment Tuition & Fees, Room & Board Books & Supplies, Transportation Dependent Care Correspondence or Distance Education Study Tuition & Fees Required Books & Supplies Transportation, Room & Board (if incurred during required on-site training) Incarcerated Student Tuition & Fees, Required Books & Supplies Spring Conference April 7 10, 2019 11
In Conclusion: Financial Aid Administrators play an important role in contributing to student success. Creating a Cost of Attendance is integral to ensuring access to post-secondary education. Setting a realistic COA assists in overcoming and removing financial barriers, allowing students to confidently and responsibly further their education. Spring Conference April 7 10, 2019 12
TELL US HOW WE DID! TELL US HOW WE DID! Please use the link below to complete a quick evaluation of this session. Session title: Creating a Cost of Attendance Evaluation link: http://tinyurl.com/y2633ola Thank you for attending. NCASFAA Fall Conference, November 3-6, 2019 14
Thank YOU Professional Affiliates! Fall Conference November 3 - 6, 2019
